DUBLIN--(BUSINESS WIRE)--Oct. 31, 2013--
Alkermes
plc (NASDAQ: ALKS) today reported financial results for the quarter
ended Sept. 30, 2013. This is the second quarter of the nine-month
period ending Dec. 31, 2013, as the company transitions to reporting on
a calendar year basis.

“Against a backdrop of another quarter of solid financial performance,
Alkermes is advancing one of the most important CNS pipelines in the
biopharmaceutical industry,” commented Richard Pops, Chief Executive
Officer of Alkermes. “During the quarter, we achieved key milestones for
our most advanced programs. Looking forward, 2014 will be an important
year for this late-stage pipeline as we obtain phase 3 results for
aripiprazole lauroxil and prepare for the NDA submission and launch, as
well as initiate the phase 3 program for ALKS 5461, which has been
granted Fast Track status for the adjunctive treatment of major
depressive disorder.”

Total revenues for the quarter were $139.8 million, compared to total
revenues of $124.0 million for the same period in the prior year.

Revenues from the company’s five key commercial products for the
quarter grew 38% to $101.5 million, from $73.8 million for the same
period in the prior year.

Non-GAAP net income for the quarter was $31.8 million, or a non-GAAP
diluted earnings per share (EPS) of $0.22. This compared to non-GAAP
net income of $23.7 million, or a non-GAAP diluted EPS of $0.17, for
the same period in the prior year.

GAAP net loss for the quarter was $7.8 million, or a basic and diluted
GAAP loss per share of $0.06. This compared to GAAP net loss of $16.7
million, or a basic and diluted GAAP loss per share of $0.13, for the
same period in the prior year.

Free cash flow for the quarter was $26.2 million, compared to $19.2
million for the same period in the prior year.

Quarter Ended Sept. 30, 2013 Financial Results

Revenues

Manufacturing and royalty revenues from the company’s long-acting
atypical antipsychotic franchise, RISPERDAL® CONSTA®
and INVEGA® SUSTENNA®/XEPLION®, were
$62.6 million, compared to $50.3 million for the same period in the
prior year. Worldwide end-market sales of RISPERDAL CONSTA and INVEGA
SUSTENNA/XEPLIONwere approximately $650 million, compared
to approximately $563 million in the same period in the prior year.

Manufacturing and royalty revenues from AMPYRA®/FAMPYRA®1
were $12.6 million, compared to $5.0 million for the same period in
the prior year.

Net sales of VIVITROL® were $19.2 million, compared to
$15.2 million for the same period in the prior year, representing an
increase of approximately 26% year over year.

Royalty revenue from BYDUREON® was $7.0 million, compared
to $3.3 million for the same period in the prior year.

Results for the quarter included RITALIN LA®/FOCALIN XR®
revenues of $9.2 million, VERELAN® revenues of $4.4 million
and TRICOR® 145 revenues of $3.5 million. This compared to
RITALIN LA/FOCALIN XR revenues of $9.1 million, VERELAN revenues of
$5.8 million and TRICOR 145 revenues of $12.5 million for the same
period in the prior year.

Costs and Expenses

Operating expenses were $143.7 million, compared to operating expenses
of $118.6 million for the same period in the prior year.

Net interest expense was $3.2 million, compared to net interest
expense of $22.4 million for the same period in the prior year. The
reduction was driven by the successful refinancing and repricing of
the company’s term loans completed in 2012 and 2013, respectively.

Balance Sheet

At Sept. 30, 2013, Alkermes recorded cash and total investments of
$395.2 million, compared to $325.0 million at June 30, 2013, and
$304.2 million at March 31, 2013.

Financial Expectations for Nine Months Ending Dec.
31, 2013

The company reiterated all of its financial expectations for the
nine-month period ending Dec. 31, 2013, (originally provided on May
23, 2013) except for Selling, General and Administrative expense,
which the company now expects to be in the range of $105 million to
$115 million, up from the previous range of $95 million to $105
million, reflecting increased commercial activity in preparation for
the aripiprazole lauroxil launch and activities related to the
VIVITROL label update.

The company reiterated its expectations for non-GAAP net income to be
in the range of $85 million to $105 million for the nine-month period
ending Dec. 31, 2013, and expects to be in the upper end of that range.

Conference Call

Alkermes will host a conference call at 8:00 a.m. EDT (12:00 p.m. GMT)
on Thursday, Oct. 31, 2013, to discuss these financial results and
provide an update on the company. The conference call may be accessed by
dialing +1 888 424 8151 for U.S. callers and +1 847 585 4422 for
international callers. The conference call ID number is 6037988. In
addition, a replay of the conference call will be available from 11:00
a.m. EDT (3:00 p.m. GMT) on Thursday, Oct. 31, 2013, through 5:00 p.m.
EST (10:00 p.m. GMT) on Nov. 7, 2013, and may be accessed by visiting
Alkermes’ website or by dialing +1 888 843 7419 for U.S. callers and +1
630 652 3042 for international callers. The replay access code is
6037988.

About Alkermes plc

Alkermes plc is a fully integrated, global biopharmaceutical company
that applies its scientific expertise and proprietary technologies to
develop innovative medicines that improve patient outcomes. The company
has a diversified portfolio of more than 20 commercial drug products and
a substantial clinical pipeline of product candidates that address
central nervous system (CNS) disorders such as addiction, schizophrenia
and depression. Headquartered in Dublin, Ireland, Alkermes plc has an
R&D center in Waltham, Massachusetts; a research and manufacturing
facility in Athlone, Ireland; and manufacturing facilities in
Gainesville, Georgia and Wilmington, Ohio. For more information, please
visit Alkermes’ website at www.alkermes.com.

Non-GAAP Financial Measures

This press release includes information about certain financial measures
that are not prepared in accordance with generally accepted accounting
principles in the U.S. (GAAP), including non-GAAP net income, non-GAAP
diluted earnings per share and free cash flow. These non-GAAP measures
are not based on any standardized methodology prescribed by GAAP and are
not necessarily comparable to similar measures presented by other
companies.

Management believes that these non-GAAP financial measures, when viewed
with our results under GAAP and the accompanying reconciliations, better
indicate underlying trends in ongoing operations and cash flows.
However, non-GAAP net income, non-GAAP diluted earnings per share and
free cash flow are not measures of financial performance under GAAP and,
accordingly, should not be considered as alternatives to GAAP measures
as indicators of operating performance.

A reconciliation of GAAP to non-GAAP financial measures has been
provided in the tables included in this press release.

Note Regarding Forward-Looking Statements

Certain statements set forth above may constitute forward-looking
statements within the meaning of the Private Securities Litigation
Reform Act of 1995, including, but not limited to: statements concerning
future financial and operating performance, business plans or prospects;
the likelihood of continued revenue growth from the company’s commercial
products; the therapeutic and commercial value of the company’s
products; and the company’s expectations concerning the timing and
results of our clinical development activities. These statements are
neither promises nor guarantees and are subject to a variety of risks
and uncertainties, many of which are beyond the company’s control, which
could cause actual results to differ materially from those contemplated
in these forward-looking statements.

These risks and uncertainties include, among others: clinical
development activities may not be completed on time or at all, and the
results of such activities may not be successful, predictive of
real-world results or of results in subsequent clinical trials; the
company, and its partners, may not be able to continue to successfully
commercialize its products; the U.S. Food and Drug Administration, or
regulatory authorities outside the U.S., may make adverse decisions
regarding the company’s products; the company’s products may prove
difficult to manufacture, be precluded from commercialization by the
proprietary rights of third parties, or have unintended side effects,
adverse reactions or incidents of misuse; and those risks described in
the Alkermes plc Annual Report for the year ended March 31, 2013, and in
other filings made by the company with the Securities and Exchange
Commission (“SEC”) and which are available on the SEC’s website at www.sec.gov,
may occur. Existing and prospective investors are cautioned not to place
undue reliance on these forward-looking statements, which speak only as
of the date they are made. The information contained in this press
release is provided by the company as of the date hereof and, except as
required by law, the company disclaims any intention or responsibility
for updating any forward-looking information contained in this press
release.

VIVITROL® is a registered trademark of Alkermes, Inc.;
RISPERDAL® CONSTA® and INVEGA® SUSTENNA®
are registered trademarks of Janssen Pharmaceuticals, Inc.; XEPLION®
is a registered trademark of Johnson & Johnson Corporation; AMPYRA®
and FAMPYRA® are registered trademarks of Acorda
Therapeutics, Inc.; BYDUREON® is a registered trademark of
Amylin Pharmaceuticals, LLC; TRICOR® is a registered
trademark of Fournier Industrie et Sante Corporation; RITALIN LA®
and FOCALIN XR® are registered trademarks of Novartis AG
Corporation; and VERELAN® is a registered trademark of
Alkermes Pharma Ireland Limited.

1AMPYRA® (dalfampridine) Extended Release Tablets,
10 mg is developed and marketed in the U.S. by Acorda Therapeutics, Inc.
and outside the U.S. by Biogen Idec Inc., under a licensing agreement
with Acorda Therapeutics, as FAMPYRA® (prolonged-release
fampridine tablets).

(tables follow)

Alkermes plc and Subsidiaries

Selected Financial Information (Unaudited)

Three Months

Three Months

Ended

Ended

Condensed Consolidated Statements of Operations - GAAP

September 30,

September 30,

(In thousands, except per share data)

2013

2012

Revenues:

Manufacturing and royalty revenues

$ 118,571

$ 107,327

Product sales, net

19,227

15,192

Research and development revenue

2,004

1,459

Total Revenues

139,802

123,978

Expenses:

Cost of goods manufactured and sold

45,423

41,491

Research and development

45,947

35,088

Selling, general and administrative

39,454

31,428

Amortization of acquired intangible assets

12,856

10,547

Total Expenses

143,680

118,554

Operating (Loss) Income

(3,878

)

5,424

Other (Expense), net:

Interest income

295

216

Interest expense

(3,477

)

(22,648

)

Other (expense) income, net

(469

)

723

Total Other (Expense), net

(3,651

)

(21,709

)

(Loss) Before Income Taxes

(7,529

)

(16,285

)

Income Tax Provision

233

422

Net (Loss) — GAAP

$ (7,762

)

$ (16,707

)

(Loss) Earnings Per Share:

GAAP (loss) per share — basic and diluted

$ (0.06

)

$ (0.13

)

Non-GAAP earnings per share — basic

$ 0.23

$ 0.18

Non-GAAP earnings per share — diluted

$ 0.22

$ 0.17

Weighted Average Number of Ordinary Shares Outstanding:

Basic and Diluted — GAAP

136,106

131,067

Basic — Non-GAAP

136,106

131,067

Diluted — Non-GAAP

144,861

136,217

An itemized reconciliation between net (loss) on a GAAP basis and
non-GAAP net income is as follows:

Net (Loss) — GAAP

$ (7,762

)

$ (16,707

)

Adjustments:

Non-cash net interest expense

267

2,092

Non-cash taxes

612

(846

)

Depreciation expense

10,818

8,264

Amortization expense

12,856

10,547

Share-based compensation

14,209

10,447

Deferred revenue

765

(1,206

)

Loss on debt refinancing

-

12,129

Change in method of revenue recognition for VIVITROL product sales

-

(1,013

)

Non-GAAP Net Income

$ 31,765

$ 23,707

Capital expenditure

5,573

4,473

Free Cash Flow

$ 26,192

$ 19,234

Alkermes plc and Subsidiaries

Selected Financial Information (Unaudited)

Six Months

Six Months

Ended

Ended

Condensed Consolidated Statements of Operations - GAAP

September 30,

September 30,

(In thousands, except per share data)

2013

2012

Revenues:

Manufacturing and royalty revenues

$ 238,359

$ 245,707

Product sales, net

36,606

27,564

Research and development revenue

3,468

2,946

Total Revenues

278,433

276,217

Expenses:

Cost of goods manufactured and sold

91,414

83,561

Research and development

79,409

72,894

Selling, general and administrative

72,387

61,212

Amortization of acquired intangible assets

25,572

20,981

Total Expenses

268,782

238,648

Operating Income

9,651

37,569

Other (Expense), net:

Interest income

456

515

Interest expense

(6,945

)

(32,818

)

Other income, net

(639

)

1,646

Total Other (Expense), net

(7,128

)

(30,657

)

Income Before Income Taxes

2,523

6,912

Income Tax Provision

2,951

1,186

Net (Loss) Income — GAAP

$ (428

)

$ 5,726

(Loss) Earnings Per Share:

GAAP (loss) earnings per share — basic and diluted

$ (0.00

)

$ 0.04

Non-GAAP earnings per share — basic

$ 0.55

$ 0.59

Non-GAAP earnings per share — diluted

$ 0.52

$ 0.57

Weighted Average Number of Ordinary Shares Outstanding:

Basic — GAAP

135,358

130,753

Diluted — GAAP

135,358

135,589

Basic — Non-GAAP

135,358

130,753

Diluted — Non-GAAP

144,143

135,589

An itemized reconciliation between net (loss) income on a GAAP basis
and non-GAAP net income is as follows:

Net (Loss) Income — GAAP

$ (428

)

$ 5,726

Adjustments:

Non-cash net interest expense

535

3,620

Non-cash taxes

3,426

(991

)

Depreciation expense

21,829

15,848

Amortization expense

25,572

20,981

Share-based compensation

23,018

18,609

Deferred revenue

668

1,764

Loss on debt refinancing

-

12,129

Change in method of revenue recognition for VIVITROL product sales

-

(1,013

)

Non-GAAP Net Income

$ 74,620

$ 76,673

Capital expenditure

9,198

11,206

Free Cash Flow

$ 65,422

$ 65,467

Alkermes plc and Subsidiaries

Selected Financial Information (Unaudited)

Condensed Consolidated Balance Sheets

September 30,

March 31,

(In thousands)

2013

2013

Cash, cash equivalents and total investments

$ 395,241

$ 304,179

Receivables

120,448

124,620

Inventory

40,708

43,483

Prepaid expenses and other current assets

22,998

19,133

Property, plant and equipment, net

274,377

288,435

Intangible assets, net and goodwill

643,161

668,733

Other assets

15,504

21,708

Total Assets

$ 1,512,437

$ 1,470,291

Long-term debt — current portion

$ 6,750

$ 6,750

Other current liabilities

66,967

79,180

Long-term debt

359,122

362,258

Deferred revenue — long-term

9,121

8,866

Other long-term liabilities

53,500

60,863

Total shareholders' equity

1,016,977

952,374

Total Liabilities and Shareholders' Equity

$ 1,512,437

$ 1,470,291

Ordinary shares outstanding (in thousands)

136,647

133,752

This selected financial information should be read in conjunction with
the consolidated financial statements and notes thereto included in
Alkermes plc's Quarterly Report on Form 10-Q for the three and six
months ended September 30, 2013, which the company intends to file in
October 2013.